Assuming that Rohan admits the modification but it is not considered fraudulent,which of the following is true regarding Taylor's liability on the note?
A) Taylor is liable for $3,000 regardless of whether or not Rohan has negotiated the note to another party.
B) Taylor's obligation will be enforced only to the amount of $3,000 if payment is to be made to Rohan;but in the event the note is negotiated to another holder,Taylor is liable for $3,500.
C) Taylor's obligation will be enforced only to the amount of $3,000 if payment is to be made to Rohan;but in the event the note is negotiated to a holder in due course,Taylor is liable for $3,500.
D) Because of the alteration,Taylor is not liable for any amounts under the promissory note.
E) Unless Taylor has a written document from Rohan to the effect that the agreement was for $3,000 only,Taylor and Rohan will be legally required to split the remainder with Taylor being held responsible for $3,250.
Correct Answer:
Verified
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